Dailyreport
Borno State Governor, Babagana Zulum, has made strong statements against President Tinubu’s proposed tax reforms, particularly the controversial changes to the VAT distribution model. These changes, which would allocate more funds based on the location of business headquarters rather than where services are consumed, have stirred concerns among northern governors. They argue that the reforms would harm the economic interests of northern states, where many companies are headquartered but where less VAT is generated compared to southern regions.
The Northern Governors’ Forum, led by Governor Muhammadu Inuwa of Gombe, has called on lawmakers from the region to reject these reforms. They stress the need for fairness in tax distribution, particularly given the north’s economic struggles and the disparities between regions. The northern states, holding a majority in the National Assembly, have significant influence and could block these changes if they choose to.
Despite their opposition to specific provisions in the bill, the governors have expressed support for reforms that aim to foster national growth, as long as they are equitable for all regions. This ongoing debate highlights the broader tensions in Nigeria over tax distribution and regional economic inequality
